Explainer | Why Central Banks Are Playing a Big Role in Pushing up Gold Prices

Explainer | Why central banks are playing a big role in pushing up gold prices

Governments are buying up gold as they see it as a safe investment – and, in some cases, a tool for evading Western sanctions.

Why did Citi Group just raise its gold price target?

While other asset classes like shares and bonds have seen some dramatic fluctuations in value this year, it has been the gold price that has shone the brightest as an investment. The precious metal has spent most of 2025 hitting new all-time record highs. February saw gold hit US$2,800 for the first time ever, soon to be followed by US$2,900. The psychologically important US$3,000 level was first hit in early March. Then gold climbed past US$3,1…

Goldman Sachs Predicts $4,000 Gold as Central Banks Choose Gold Over Bitcoin

According to Goldman Sachs, the precious metal could soar to $4,000 per ounce, outperforming both BTC and silver as the world’s most trusted safe-haven asset. Central Banks Fueling Gold Demand The traditional relationship between U.S. interest rates and gold prices has changed. Historically, rising rates pushed investors toward Treasury bonds, pulling them away from gold. That trend broke down after Russia’s invasion of Ukraine in 2022. Western …